Ghana has inaugurated a new gold refinery as part of its broader strategy to enhance the nation’s gains from its mineral resources.
Samuel A. Jinapor, the Minister for Lands and Natural Resources, emphasised that this development reflects the government’s commitment to transitioning from traditional resource exploitation to a model centred on modern value addition.
Jinapor praised Vice President Dr Mahamudu Bawumia for his pivotal role in advancing policies to optimise resource utilisation and improve living standards.
Bawumia’s initiatives include digitalising the National Assay Laboratory, the Domestic Gold Purchase Programme, and the Gold for Oil Programme, which will significantly bolster Ghana’s gold reserves and crude oil consumption.
“The establishment of the Royal Gold Refinery is a significant achievement in our quest to position Ghana as a leading hub for mineral refining in the region,” Jinapor stated. He highlighted the refinery’s role in supporting Ghana’s ambition to become the mining capital of Africa, integrating all aspects of the mining industry from exploration to innovation.
The minister also revealed ongoing efforts to construct a $450 million manganese refinery in Nsuta to bolster the steel, aluminium, and copper industries.
The Royal Gold Refinery is expected to advance Ghana’s bid for London Bullion Market Association (LBMA) certification, which would allow the country to trade refined gold on the international market.
Vice President Bawumia proposed a new framework for managing Ghana’s foreign exchange reserves in his address.
He suggested anchoring the cedi’s value to gold, utilising the Bank of Ghana’s gold purchase programme to stabilise the currency.
Bawumia argued that this approach would help maintain exchange rate stability and enhance the country’s foreign exchange reserves.
Governor Dr Ernest Addison of the Bank of Ghana echoed these sentiments, noting that the new refinery would support the Bank’s Domestic Gold Purchase Programme (DGPP).
The DGPP has enabled the accumulation of substantial foreign exchange buffers, with the Bank of Ghana purchasing 65.4 tons of gold, valued at $5.07 billion, since the programme’s inception.
This year alone, the Bank has acquired 23 tons of gold worth approximately $1.8 billion.
Addison highlighted the refinery’s potential to boost gold beneficiation, reduce smuggling, and promote transparency in gold trading.
He also emphasised the broader economic benefits, including job creation, increased foreign exchange earnings, and enhanced financial stability.
The refinery’s future LBMA accreditation will further reduce Ghana’s reliance on foreign refineries and support the central Bank’s efforts to diversify and grow its foreign exchange reserves.
The launch of the Royal Gold Refinery marks a new chapter in Ghana’s mining industry.
It promises to enhance the nation’s economic prospects and leverage its gold resources more effectively.
